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The ongoing conflict in the Middle East, specifically the US-Israel war on Iran, has sent shockwaves through the global economy, with the Bank of England predicting that over 1.3 million more UK households could face increased mortgage payments. Financial markets have reacted swiftly, with banks pulling around 1,500 mortgage products and raising interest rates on their remaining 7,000 home loan products in recent weeks, according to the Bank's financial policy committee (FPC). The FPC warns that approximately 5.2 million borrowers, or roughly 58% of borrowers across the country, could face higher mortgage payments by the end of 2028, up from 3.9 million before the conflict began. The data provider Moneyfacts reported that the average two-year fixed residential mortgage rate has risen to 5.84%, up from 4.83% at the start of March. Caitlyn Eastell, a personal finance analyst at Moneyfacts, noted that the impact on borrowers has been almost immediate, with borrowing costs sharply rising. The FPC emphasized that a prolonged war increases the possibility of large, frequent and possibly overlapping shocks that could put global financial stability at risk. The UK's economic outlook has deteriorated, increasing pressure on households and businesses, with the FPC adding that a prolonged conflict could amplify risks that were already present before the conflict began. The Bank of England governor, Andrew Bailey, cautioned that markets may be getting ahead of themselves by pricing in interest rate hikes in response to the Iran war, stating that the Bank's remit is to cause the least damage to the economy and jobs.

The Iraqi Ministry of Interior announced on Tuesday that an unidentified foreign journalist was seized by "unknown individuals" in Baghdad, though the reporter’s name was not disclosed in the initial statement.Security forces swiftly pursued the kidnappers, arresting one suspect and confiscating the vehicle used in the abduction. Authorities emphasized that investigations remain ongoing to locate all participants and secure the journalist’s release.This kidnapping comes as Iraq experiences a surge in violence linked to the broader US‑Israel war on Iran. Recent weeks have seen attacks on Iraqi security forces in Anbar province and elsewhere, underscoring a volatile security environment.The Committee to Protect Journalists (CPJ) expressed deep concern after media reports identified the victim as U.S. freelance journalist Shelley Kittleson. CPJ’s Middle East regional director, Sara Qudah, urged Iraqi authorities to "do everything in their power to locate Shelley Kittleson, ensure her immediate and safe release, and hold those responsible to account."U.S. State Department official Dylan Johnson confirmed that Washington is "aware of the reported kidnapping of an American journalist" in Baghdad. He noted that the State Department had previously issued a warning to the journalist about threats and that it is coordinating with the FBI to facilitate a swift release.Johnson also revealed that Iraqi authorities have taken into custody an individual with ties to the paramilitary group Kataib Hezbollah, who is believed to be involved in the kidnapping.Press‑freedom advocates have repeatedly called on the Iraqi government to strengthen protections for journalists. Reporters Without Borders warned that journalists face "threats from all sides" amid political instability and financial pressure, noting that abductions are often employed to "terrorise and silence" media workers.CPJ has documented a series of press‑freedom violations since the war began on February 28, including a mid‑March assault on a television crew in Kirkuk allegedly carried out by fighters affiliated with the Popular Mobilization Forces (PMF), a faction of Iraq’s armed forces with Iran‑aligned elements.

Iranian Foreign Minister Abbas Araghchi told Al Jazeera that Tehran has been exchanging messages with the United States, either directly or via regional partners, as the US‑Israel war on Iran continues. He emphasized that these contacts do not constitute formal negotiations. "I receive messages from US special envoy Steve Witkoff directly, as before, and this does not mean that we are in negotiations," Araghchi said. He added that all communications are routed through the Foreign Ministry or security agencies, and there is no truth to claims of active talks with any US party. Reflecting on past diplomatic experience, Araghchi recalled a previous agreement—referring to the 2015 Joint Comprehensive Plan of Action (JCPOA)—that the United States later abandoned. "We do not have any faith that negotiations with the US will yield results; the trust level is at zero," he asserted. President Masoud Pezeshkian echoed the skepticism, stating that the US "does not believe in diplomacy" after Iran was attacked twice during prior negotiations. In a phone call with European Council President Antonio Costa, Pezeshkian said Iran possesses the "necessary will" to end the war, but insists on guarantees to prevent further aggression. US Defence Secretary Pete Hegseth countered, saying Washington aims to secure a deal that would end the conflict and reopen the Strait of Hormuz, yet remains prepared to "negotiate with bombs" if needed. Addressing the strategic waterway, Araghchi noted that the strait lies within Oman’s and Iran’s territorial waters and can be used strategically. "Only for the ships of those who are at war with us, this strait is closed. That is normal during war," he explained, adding that some nations avoid the route due to security concerns and high insurance costs, while others have negotiated access. He warned that any post‑war arrangement for the strait will be decided jointly by Oman and Iran, with the potential to transform it into a "peaceful waterway." Regarding rumors of a possible US ground operation, Araghchi said Tehran is unafraid: "We are waiting for them. I don’t think they’d dare to do such a thing. There will be a lot of strength waiting for them." He affirmed Iran’s readiness to repel any ground attack. The foreign minister clarified that Iran has neither responded to nor submitted any counter‑proposals to the US 15‑point plan aimed at ending the war. The proposal, according to earlier reports, calls for Iran to renounce the acquisition of nuclear weapons and to limit its missile stockpile in range and quantity. Araghchi concluded that Iran will only accept an end to all attacks in the region, not merely a ceasefire, underscoring the country's firm stance amid ongoing hostilities.

President Donald Trump is reportedly weighing a request for Arab countries to fund the U.S.–Israel war on Iran, White House spokesperson Karoline Leavitt told reporters on Monday. Leavitt said the president is "quite interested" in calling on regional partners to share the expense.The idea mirrors the financing arrangement of the 1990‑91 Gulf War, when a coalition of Arab and Western nations covered roughly 88% of the $61 billion cost, leaving the United States to foot only about 12%.Trump also hinted that, even if the Strait of Hormuz remains closed, other export‑dependent partners should manage the crisis. The strait carries about 20% of the world’s oil and LNG shipments; its shutdown has pushed Brent crude to **$116 per barrel**, up from pre‑war levels near **$65**.Iran, meanwhile, has demanded that the United States pay reparations to Iranian victims as a precondition for any cease‑fire.So far, there is no clear commitment from Gulf Cooperation Council (GCC) members—countries that have themselves been hit by Iranian strikes—to finance the conflict. Analysts estimate the total bill could run into tens of billions of dollars, though exact figures remain uncertain.Experts note a shift in regional attitudes: GCC states opposed the war before it began and continue to call for diplomacy, according to Zeidon Alkinani of the Arab Perspectives Institute. He added that Israel appears to be the primary driver pushing the United States into the confrontation.History shows the United States has repeatedly sought external funding for wars it leads. During the Gulf War, Saudi Arabia contributed $16.8 billion (27% of total costs) and Kuwait $16 billion (26%). Japan, Germany, the UAE and South Korea also supplied sizable sums.Post‑World War II, the U.S. administered the Marshall Plan, providing over $13 billion to rebuild Europe, while Germany and Japan paid reparations and later funded the upkeep of U.S. bases—about $1 billion annually each.In the ongoing Ukraine war, the United States once delivered the largest aid package—€114.64 billion (≈$134 billion) by mid‑2025. Since Trump returned to office in 2025, he has withdrawn **99% of U.S. support**, shifting the financial load to European allies and turning the U.S. into a major arms supplier, with weapons sales reaching a record **$318.7 billion in 2024**. Recent deals, such as a $10 billion weapons package for Ukraine financed by European partners, illustrate this new model.These precedents underscore a pattern: when U.S. leadership faces costly overseas engagements, it often looks to allies—especially those with strategic interests—to share or assume the fiscal burden.

The Israeli military has confirmed that four soldiers were killed in combat in southern Lebanon, where its forces are engaged in clashes with Hezbollah fighters following a ground invasion.In a statement, the army named three soldiers from the same battalion who 'fell during combat'. A separate statement confirmed another soldier's death in the same incident, with two others wounded.This brings the total number of Israeli soldiers reported killed since fighting began on March 2 to ten, following a US-Israeli joint attack on Iran. The Lebanese Ministry of Public Health reports that over 1,200 people have been killed in Israeli attacks on Lebanon, with more than a million displaced.The escalation comes after the United Nations Interim Force in Lebanon (UNIFIL) reported that two peacekeepers were killed in an explosion near the southern Lebanese village of Bani Haiyyan. Another peacekeeper was killed by a projectile on Sunday.Israeli Prime Minister Benjamin Netanyahu has ordered the military to expand its invasion in southern Lebanon, aiming to extend a 'buffer zone' to the Litani River. Israel's far-right ministers have urged Netanyahu to annex southern Lebanon, as the military destroys infrastructure to isolate the area.Al Jazeera's Lebanon correspondent, Zeina Khodr, reported that Monday night marked a new escalation as Israel opened a new front in Lebanon's Bekaa Valley, targeting strategic supply lines for Hezbollah. Khodr noted that Hezbollah Secretary-General Naim Qassem acknowledged the imbalance of power but vowed to make the war 'costly' for Israel.The conflict in Lebanon is part of the ongoing US-Israel war on Iran, which has resulted in over 1,340 deaths since February 28. Netanyahu has reportedly told US officials that any future agreement between the US and Tehran will not stop Israel's actions in Lebanon.

A drone attack on a fully loaded Kuwaiti crude oil tanker at Dubai Port sparked a fire that was later extinguished, authorities said. The Kuwait Petroleum Corporation (KPC) reported that the Al Salmi tanker was struck in an Iranian attack while anchored at the port in the United Arab Emirates, causing damage to the vessel and a fire on board.The incident is part of a string of assaults on merchant vessels by missiles or explosive air and sea drones in the Gulf and Strait of Hormuz since the United States and Israel's war on Iran began on February 28. The tanker was loaded with two million barrels of oil from Kuwait and Saudi Arabia, according to data from Lloyd's and TankerTrackers.Iran's foreign minister insisted that Tehran's attacks on the Gulf Arab states only target US forces, even after assaults have hit civilian targets throughout the region. The incident has raised concerns about a possible oil spill in surrounding waters, with Kuwaiti state news agency KUNA reporting that authorities warned of this risk.Multiple loud explosions were heard in Dubai, starting at around 6 or 7pm local time on Monday until about 1 or 2am on Tuesday, said Al Jazeera's Zein Basravi, reporting from Dubai. The attacks seem to be getting closer, louder, and one of them hit that oil tanker off the coast of the waters of Dubai.

The United States Department of Defense has strongly denied allegations that a broker for Defence Secretary Pete Hegseth attempted to make a large investment in weapons companies in the run-up to the war on Iran. The denial comes after a report by The Financial Times claimed that a wealth manager for Hegseth contacted BlackRock about making a multimillion-dollar investment in a defence-related fund.Pentagon spokesman Sean Parnell demanded the immediate retraction of the report, stating that the allegations were 'entirely false and fabricated.' He emphasized that neither Secretary Hegseth nor any of his representatives approached BlackRock about any such investment.The proposed investment was reportedly in an exchange-traded fund whose holdings include Lockheed Martin and Northrop Grumman. However, according to The Financial Times, the investment did not go ahead because the fund was not yet available for purchase at the time.The report has sparked scrutiny of well-timed trades in financial and prediction markets, fueling speculation that figures with insider knowledge may be profiting from US President Donald Trump's war plans.Despite the denial, the incident has raised concerns about the integrity of defence-related investments and the potential for insider trading.

As gas prices surge past $4 a gallon, Donald Trump's approval rating has plummeted to 33%, the lowest during his second term, according to a University of Massachusetts Amherst poll. The war on Iran, which has led to rising fuel costs, is becoming a liability for the Republican party.JD Vance, the vice-president and potential 2028 Republican presidential candidate, is attempting to distance himself from the Iran conflict. Sources close to Vance are speaking out, claiming he has always been against the war. Axios reported that Vance had expressed skepticism about Israel's prime minister, Benjamin Netanyahu, over the war.Vance's wife, Usha, is also gearing up for a public role, launching a podcast called 'Storytime With the Second Lady' aimed at children, a move seen as an attempt to build a positive public image ahead of the 2028 election.Despite these efforts, Vance's charisma and credibility are being questioned. His appearance on The Benny Show podcast, where he discussed UFOs and aliens as 'demons,' has raised concerns about his judgment and appeal to a broader audience.

A Kuwaiti oil tanker was attacked by an Iranian drone at Dubai port on Monday night, causing significant concern for the safety of civilian maritime workers in the region. The tanker, owned by Kuwait's state oil company, was carrying approximately 2 million barrels of oil, valued at over $200 million at current prices. The attack occurred amidst the ongoing US-Israel war on Iran, which has already led to thousands of deaths, disruptions in energy supplies, and fears of a global economic downturn. The incident has sparked a significant increase in oil prices, with Brent crude surging above $118 a barrel on Tuesday, marking a 59% gain for March, the largest monthly increase on record. Following the attack, dozens of tankers in the area have chosen to leave, seeking safer locations. A crew member on a nearby oil tanker described the situation as terrifying, stating, 'There's no safe place here.' The incident has also drawn a response from Donald Trump, who warned that the US would obliterate Iran's energy plants and oil wells if it did not open the Strait of Hormuz. The attack on the Salmi tanker, which was headed to Qingdao, China, has highlighted the vulnerability of maritime traffic in the region and the potential for further escalation in the conflict. Despite the fire being extinguished and no injuries reported, the situation remains tense, with many questioning the safety of their operations in the area.